In the state of Tennessee, long-term care facilities are licensed and regulated by the Tennessee Department of Health – Office of Health Care Facilities (OHCF). Pursuant to 68-11-906 of the Tennessee Code, long-term care facilities are required to file a surety bond with the OHCF if they accept and manage the personal funds of their residents. Residents of facilities such as these are vulnerable to improper use of trust fund finances, but this bond guarantees the principal (care facility) will protect and manage monies in the trust ethically and comply with all applicable regulations of state and federal law. If a harmed party files a valid claim against the bond, the surety will pay out up to the penal sum of the bond to resolve the claim. The principal is then required to reimburse the surety for all monies paid out, including any attorney fees incurred. The amount for this bond varies and must equal the total amount of funds held in trust for the facility residents. It is recommended you contact the OHCF for specific questions regarding the licensing process and the bond amount you will need prior to bonding.
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.
Surety Bond Name
Patient Trust Surety Bonds – Tennessee
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